Council members said they were not satisfied with the response from housing administrators two years after the council had approved the initial financing for the First-Time Homebuyers Revolving Fund — with $1.2 million allocated to the fund so far.

How quickly the Housing Division of the Department of Housing and Human Concerns can move on the program is less certain.

At a committee meeting Aug. 14, Mayor Charmaine Tavares told committee members there were "kinks" in the law setting up the First-Time Homebuyers Revolving Fund that needed to be fixed before the program could proceed. She said the defects in the law could make it more more difficult on the homebuyers it is intended to help by requiring a massive final "balloon" payment.

Another involved a question over a contract that was initially granted to a private financing agency to provide the loans to first-time homebuyers.

Tavares said that housing director Vanessa Medeiros had only been on the job since February and had been occupied with managing existing programs that provide housing for the needy.

At the time, Tavares said she would expedite the process for amending the housing fund ordinance. Yesterday, deputy housing director Lori Tsuhako said the department had submitted a "first draft of amendments" to the corporation counsel for review.

Challenged by policy committee chairman Danny Mateo, Tsuhako agreed that there is an urgency to get the program moving and added that the department has draft requests for proposals ready to go for financial institutions to assist in the program.

But committee vice chairman Riki Hokama still expressed his frustration that the program was not being implemented after the council had approved a law that was reviewed by county lawyers.

"We have worked hard in drafting the ordinances," Hokama said to The Maui News.

The First-Time Home Buyers Revolving Fund is designed to provide loans up to $15,000 at no interest for 15 years to assist lower-income families with a down payment and closing costs for a home purchase. As the initial loans are repaid, the revolving fund would be able to assist other qualified families with downpayments.

The council initially authorized the fund in 2005, allocating $400,000 a year to the special fund, and approved an ordinance to implement the program last year.

Members said they thought the program was being implemented but were surprised to hear from constituents that it wasn't the case earlier this year.

Hokama said council member Mike Molina, who introduced the legislation, worked "extremely hard" to draft the bill that was approved in 2006. He said he didn't want to hear more excuses for why the program wasn't being implemented.

"I want this done," he said.

Molina said the delays are hurting the young families who can use help in financing a first home, while the cost of housing continues to inflate.

"Time is money," he said.

Yesterday, the committee recommended approval of a housekeeping measure to authorize funds for administrative costs of the program, providing that up to 3 percent of the First-Time Home Buyers' Revolving Fund may go to administrative expenses.

The 3 percent allocation will allow the Department of Housing and Human Concerns to issue the request for proposals to have an agency process and provide loans to qualified borrowers. The department will oversee the program.